Liabilities for social insurance programs, such as Social Security, are recognized in the federal government's balance sheet similar to the reporting for pension plans-that is, the liability is the unfunded present value of amounts due in the future to current Social Security beneficiaries and for benefits earned to date by active participants.

Question

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FASAB SFFAS No. 17, "Accounting for Social Insurance," requires that liabilities for social insurance programs be recognized only for benefits that are due and payable at the end of the reporting period.

Liabilities for Social Insurance Programs, Such as Social Security, Are